The company has been in a turnaround process over the last few years, and the turnaround already shows signs of success reflected in the financials with growth and record earnings. BBD.B has gradually paid down debt, but leverage is still moderately high with net debt/EBITDA at 4.1x. The recovery was due to decent execution and a recovery in the aerospace industry. We think BBD.B could be interesting given the business momentum, though some of that upside is already priced in. Overall, we think BBD is 'buyable' here. We of course do not like its (horrible) history, but as a large cap company with a defense connection, we think investors will continue to support it for the next several years. There are not many liquid alternatives in the sector so by default it can attract attention when the sector is running, as it is now.
5i Research Answer: